This paper presents a stepwise Cost-Benefit Analysis (CBA), which is a method for advising decision-makers by evaluation of the social profitability of projects and policies, applied in a coastal area in Sweden.

In this particular case study, a CBA procedure is applied for evaluating nutrient management options for reducing eutrophication effects in the coastal area of Himmerfjärden SW of Stockholm. The CBA indicates a positive net benefit for a combination of options involving increased nitrogen removal at a major sewage treatment plant, creation of new wetlands and connecting a proportion of private sewers to sewage treatment plants. The procedure also illustrates how it is important the cooperation between ecologists and economists are in carrying out a CBA. It is also shown in the working paper that this interdisciplinary aspect, of a coupled ecological-economic simulation model, can be used as a tool for facilitating the involvement of stakeholders in a CBA.

The paper is written by Gerda Kinell, Tore Söderqvist, Ragnar Elmgren, Jakob Walve and Frida Franzén

Read it here:
CERE Working Paper, 2012:1, Cost-Benefit Analysis in a Framework of Stakeholder
Involvement and Integrated Coastal Zone Modeling